Crosstex Energy, Inc. Q1 2009 Earnings Call Transcript

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2009-05-08 10:33:11.0

Tags: Call Transcript, Wachovia Corp., Earnings, Crosstex Energy Inc., Asset Management, Operational Planning, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). And your first question comes from the line of Sharon Lui with Wachovia. You may proceed.

Sharon Lui – Wachovia

Hi, good morning.

Barry Davis

Good morning, Sharon.

Sharon Lui – Wachovia

Just wondering if the pipeline anomalies on Boardwalk, the Gulf Crossing pipeline may have on your operations. What type of impact, if any?

Barry Davis

Yes. Sharon, as indicated in our numbers here, at the end of the first quarter we are moving 350 million a day across our North Texas pipeline, which is the pipe that we would use to deliver into the Gulf Crossing. And so, we are near capacity and don’t expect that will have any impact on our operations. We are able to move the gas to other places. Look forward to that improving; as we understand it, it will be a month-by-month improvement and by mid-year, we expect to be – it to be fully operational. But in the meantime, we don’t expect it to have an impact on us.

Sharon Lui – Wachovia

Okay. Also, if you can provide some detail on the assets earmarked for sale? Looks like the EBITDA run rate might be about $36 million.

Barry Davis

Sharon, first of all, broadly, we are not going to comment on specific assets and details in that regard. We just believe that is strategically disadvantageous for us to communicate too much around those asset sales. But Bill, do you have a comment on the EBITDA?

Bill Davis

No, that’s about right.

Sharon Lui – Wachovia

Okay. And Bill, maybe if you could just comment on the interest expense? It looks pretty low in comparison to your full-year guidance.

Bill Davis

The – I think the difference, Sharon, is there is only month in the current period of the new amendment that’s impacting the quarter versus what’s in the full-year guidance, which assumed all 12 months of the adjustment would be in place frankly and then in addition, as you see in the statement, we’ve adjusted out a portion of the interest expense in the quarter to associate it with the discontinued operations.

Sharon Lui – Wachovia

Okay. Thank you.

Barry Davis

Thanks, Sharon.

Operator

And your next question comes from the line of John Edwards with Morgan Keegan & Company. You may proceed.

John Edwards – Morgan Keegan & Company

Yes, good morning everybody.

Barry Davis

Good morning, John.

 

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